Analysts Skeptical on SNB Action

LONDON—The Swiss National Bank's action to cap the franc's rise should logically help euro-zone banks and governments, but it may not work out that way, analysts warn.

The SNB announced earlier Tuesday that it would buy unlimited amounts of foreign currency to stop the franc strengthening above 1.20 to the euro, in a single-handed attempt to reverse a disastrous currency appreciation that it said was creating the risk of deflation....